Havells India Q2 FY27 Results Analysis: Revenue Jumps 35%, EBITDA Margin Recovers 170 bps
Havells India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 6,416.62 Cr (+34.62% YoY) and PAT growth of +11.13% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 22, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 6,416.62 Cr (+34.62% YoY) |
| PAT (Q2) | Rs. 352.83 Cr (+11.13% YoY) |
| EBITDA margin | 8.98% (-29 bps YoY) |
| EPS (Q2) | Rs. 5.62 (+9.43% YoY) |
| Market cap | Rs. 67,337.37 Cr |
| CMP | Rs. 1,073.00 |
Quarter Snapshot
Revenue grew 34.62% YoY to Rs.6,416.62 cr on copper-price pass-through in cables (+47.86%), with EBITDA margin recovering 170 bps QoQ to 8.98% and management's Q1 guidance items (A&P normalization, switchgear recovery, capex pacing) all on track. However, margins remain below the year-ago level, cables margin compressed to 10.15%, and Lloyd's loss widened to Rs.(103.65) cr. No guidance beats versus management's own prior targets; the setup is one of guided normalization in progress with commodity pass-through capping margin upside.
Key Investment Insights
Key Positives
- Revenue grew 34.62% YoY to Rs.6,416.62 cr, led by cables (+47.86% YoY to Rs.2,998.90 cr)
- Switchgears revenue recovered to +31.29% YoY from −3.5% in Q1, with segment margin at 25.38%
- EBITDA margin improved 170 bps QoQ to 8.98% from Q1's 7.28% trough
- A&P spend normalized to 2.1% of revenue (Rs.136.33 cr) from 4.4% (Rs.285.73 cr) in Q1, as guided
- Renewables revenue grew 147.81% YoY to Rs.329.16 cr with segment result up 443.91% YoY to Rs.27.25 cr
- Normalized YoY PAT growth is ~+24.8% after adjusting Q2FY26's Rs.45.27 cr Faridabad land-sale gain from the base
- Zero borrowings maintained; finance cost declined 46.83% YoY to Rs.4.86 cr
- H1 capex of Rs.654 cr is on track against the FY27 guidance of ~Rs.1,400 cr
Risk Factors
- Cables segment margin compressed from 13.72% to 10.15% YoY as copper-price pass-through drove revenue but not rupee margins
- EBITDA margin of 8.98% remains 29 bps below the year-ago 9.27% and below the 9-9.5% benchmark
- Lloyd Consumer loss widened to Rs.(103.65) cr (−16.87% margin) vs Rs.(98.85) cr loss in Q2FY26
- Lighting & Fixtures was the slowest segment at +6.96% YoY revenue with margin falling from 13.46% to 10.23%
- Effective tax rate rose 264 bps YoY to 25.91% on a higher deferred tax charge
- H1 free cash flow was negative at Rs.(810.85) cr with inventories up 13.5% since March
Ask about this
Ask Cofacto a question about this result. Answers cite filings and company data.
Related
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.